For federal
social security administration, the 2016 employer copies of W-2 / 1099-MISC
filing deadline is Tuesday, January 31, 2017. Most states are adopting the January 31st deadline as
well.Ohio being one of them.

1099 reporting requirements.

New due
dates beginning with 2016 Information Returns:

For federal purposes, all employers are required to
report any transactions paid to an individual or partnership totaling $600 or
more on Form 1099 Misc, box 7. These 1099 Misc forms and the corresponding 1096 forms are required to
be reported ByJanuary
31stof the year following
the tax year,

All other 1099 forms are required by February
28thof the year following
the tax year.

HB 5
Business updates for Municipal Withholding

Monthly filing and payment is required if there is more than $200 in any month in of the previous calendar quarter or more than $2,399 in prior year. Payments due on the 15th of the following month.

Quarterly filing and payment is required if the monthly withholding is less than $200 or the prior annual withholding is less than $2,399. Effective Sept 14, 2016, Senate Bill 172 changed the due date to the last day of the month following the end of the quarter.

Semi-monthly withholding MAY be required if annual withholding is greater than $12,000. The due date is 3 business days after the 15th and end of the month.

Revised Filing Deadlines:

Form 990 Exempt OrganizationsMay
15

Form 1065 PartnershipsMarch
15

Form 1120S S CorporationsMarch
15

Form 1120 C CorporationsApril
15

Form 1041 Trust and EstateApril
15

FUTA Credit Reductions

The current FUTA rate remains at 6% on the first $ 7,000 of
wages paid to each employee. Those companies contributing to a state
unemployment fund receive a 5.4% credit resulting in a .6% net FUTA tax rate or
$42.00 per employee.

For 2016, Connecticut and Ohio repaid their outstanding federal
loan advances thereby eliminating any FUTA credit reduction. In 2016, there is
no Schedule A to file for Ohio wages. California and Virgin Islands have a 1.8%
credit reduction.

Social Security Wage
Base. The 2017 wage base
will be $127,200. The employee and
employer match will be 6.2%. The maximum deduction will be $7,886.40 ($127,200 x 6.2%). The 2016 wage base was $
118,500.

Medicare Tax. As in prior years, there is no limit to
the wages subject to the Medicare Tax; therefore, all covered wages are still
subject to the 1.45% tax. Wages paid in excess of $200,000 will be subject to
an extra 0.9% Medicare tax that will be withheld only from employees’ wages.

Additional Medicare Tax

Under a provision of the Affordable Care Act, the employee-paid
portion of the Medicare FICA tax subject to a 0.9 percent Additional Medicare Tax on
amounts over these threshold.

$250,000
for married taxpayers who file jointly.

$125,000
for married taxpayers who file separately.

$200,000
for single and all other taxpayers.

Additional Medicare Tax withholding applies only to employee
compensation in excess of these thresholds in a calendar year. The
employer-paid portion of the Medicare tax on these amounts remains at 1.45
percent.

Dependent Care
Limits. The maximum exclusion
from gross income under a dependent care program is $5,000 for an individual or
a married couple filing jointly.

IRA Contribution
Limits. The 2017 contribution
limit for Simple IRAs is $12,500. The catch-up contribution for those age 50 or
older by December 31, 2017, is $3,000.

401(k), 403(b) and 457
Contribution Limits. The
contribution limit for these plans’ employee deferrals is $18,000. The catch-up
contribution for those age 50 or older by December 31, 2017, is $6,000. Maximum
contribution from all sources is
$54,000 (plus the $6,000 catch-up if age 50 or older), or 100% of an employees
compensation.

For employee stock ownership plans (ESOPs),the
maximum account balance in the plan subject to a five-year distribution
period will increase to $1,080,000 from $1,070,000, while
the dollar amount used to determine the lengthening of the five-year
distribution period rises to $215,000 from $210,000.

IRAs

The limit on annual contributions to an IRA will stay unchanged at $5,500. The
additional catch-up contribution limit for individuals ages 50 and over remains $1,000.

Traditional IRA deduction phase-out. Taxpayers can deduct contributions to a traditional IRA
if they meet certain conditions. If during the year either the taxpayer or
his/her spouse was covered by a retirement plan at work, the deduction may
be phased out until it is eliminated, depending on filing status and
income. The phase-out ranges for 2017 are:

• For single taxpayers covered by a workplace retirement
plan, the phase-out range is$62,000
to $72,000, up from $61,000 to $71,000.

• For married couples filing jointly, where the spouse making the IRA contribution is
covered by a workplace retirement plan, the phase-out range is $99,000
to $119,000, up from $98,000 to $118,000.

• For an IRA contributor who is not covered by a
workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is
between $186,000 and $196,000, up from $184,000 and $194,000.

• For a married individual filing a separate return who
is covered by a workplace retirement plan, the phase-out range is not subject to an annual
cost-of-living adjustment and remains $0 to $10,000.

Roth IRA income phase-out. The adjusted gross income (AGI) phase-out range for
taxpayers making contributions to a Roth IRA will be:

• For singles and heads of household, the income phase-out range is $118,000 to
$133,000, up from $117,000 to $132,000.

• For married couples filing jointly, the income phase-out ranges is $186,000
to $196,000, up from $184,000 to $194,000.

• For a married individual filing a separate return who makes contributions to a Roth IRA, the
phase-out range is not subject to an annual cost-of-living adjustment
and remains $0 to $10,000.

2017
Retirement Savings Contribution Credit

The 2017 adjusted gross income limit for the
saver's for low- and moderate-income workers will rise to $62,000 for
married couples filing jointly; $46,500 for heads of
household; and $31,000 for singles and married couples filing
separately $30,750.

The amount of the credit is a maximum of 50
percent of an employee’s retirement plan contributions of up to $2,000 (or
$4,000 for married couples filing jointly), depending on the filer's adjusted
gross income (AGI) as reported on their Form 1040 or 1040A. Consequently, the
maximum saver’s credit is $1,000 (or $2,000 for married couples filing
jointly).

2016 Saver's Credit

Tax Credit Rate

Married, Filing
Jointly

Head of Household

Single/Other Filers*

50% of contribution

AGI not more than
$37,000

AGI not more than
$27,750

AGI not more than
$18,500

20% of contribution

$37,001 - $40,000

$27,751 - $30,000

$18,501 - $20,000

10% of contribution

$40,001 - $61,500

$30,001 - $46,125

$20,001- $30,750

0% of contribution

more than $61,500

more than $46,125

more than $30,750

*Includes married couples filing separately or qualifying
widow(er)s.

2017
Income Tax Brackets

Single Filing Individual Return (other than surviving spouses and heads of households)

Tax Rate2017
taxable Income2016
Taxable Income

10%$0 - $9,325$0 - $9,275

15%$9,326 - $37,950$9,276 - $37,650

25%$37,951 - $91,900$37,651 - $91,150

28%$91,901 - $191,650$91,151 - $190,150

33%$191,651 - $416,700$190,151 - $413,350

35%$416,701 - $418,400$413,351 - $415,050

39.6%$418,401 +$415,051
+

Married Filing
Jointly (and surviving spouse)

Tax Rate2017
taxable Income2016
Taxable Income

10%$0 - $18,650$0 - $18,550

15%$18,651 - $75,900$18,551 - $75,300

25%$75,901 - $153,100$75,301 - $151,900

28%$153,101 - $233,350$151,901 - $231,450

33%$233,351 - $416,700$231,451 - $413,350

35%$416,701 - $470,700$413,351 - $466,950

39.6%$470,701 +$466,951 +

Married Filing Separate Returns

Tax Rate2017
taxable Income2016
Taxable Income

10%$0 - $9,325$0 - $9,275

15%$9,326 - $37,950$9,276 - $37,650

25%$37,951 - $76,550$37,651 - $75,950

28%$76,551 - $116,675$75,951 - $115,725

33%$116,676 - $208,350$115,726 - $206,675

35%$208,351 – 235,350$206,676 - $233,475

39.6%$235,351 +$233,476 +

Heads of Households

Tax Rate2017
taxable Income2016
Taxable Income

10%$0 - $13,350$0 - $13,250

15%$13,351 - $50,800$13,251 - $50,400

25%$50,801 - $131,200$50,401 - $130,150

28%$131,201 - $212,500$130,151 - $210,800

33%$212,501 - $416,700$210,801 - $413,350

35%$416,701 – 444,550$413,351 - $441,000

39.6%$444,551 +$441,001 +

Revenue
Procedure 2016-55 also states that among other income tax adjustments for
2017:

The personal exemption
remains at $4,050.

The standard deduction
for single taxpayers and married taxpayers filing separately rises by $50
to $6,350.

The standard deduction for married taxpayers filing joint
returns rises by $100 to$12,700.

The standard deduction for
heads of household rises by $50 to $9,350

Social Security Benefit Payments Rise Marginally

Monthly Social Security and Supplemental
Security Income (SSI) benefits increased just 0.3 percent in 2017. The maximum
Social Security benefit for workers retiring at full retirement age in 2017
will be $2,687 per month, up from $2,639 in 2016.

HSAs vs. FSAs: Key
Differences

Health savings accounts (HSAs), which help individuals save for future
qualified medical expenses, must be linked to high-deductible health insurance
plans. HSA accounts are employee-owned, and contributions can be made by the
employer, the worker or both, using pretax dollars. Funds employees withdraw to
pay for health care services are not taxed. Amounts saved in an HSA accumulate
over time (there is no use-it-or-lose-it rule).

Flexible spending accounts (FSAs), like HSAs, also allow employees
to deduct pretax dollars from their paychecks to pay for eligible out-of-pocket
health care expenses. FSAs do not need to be coupled with
high-deductible plans, however. But participants have had to spend annual
contributions by the end of the year (extended by a 2½-month grace
period if the plan allows) or they forfeited the remaining funds.

As of
subsequent IRS guidance,
employers that offer FSA programs that do not include a grace period now have
the option of allowing workers to roll over up to $500 of unused funds at the
end of the plan year.

contact us

For more information or a complimentary consultation,
please call Warfield & Companyat (330) 655-1395
or Contact Us Online

9/15/2017Corporations: File 2016 form 1120 and 1120S if extendedCorporations: File third quarter estimated taxPartnerships: File 2016 form 1065 or 1065-B if extendedIndividuals: File third quarter estimated taxIndividuals: City third quarter estimated payment due